Agency is slightly cheaper than direct nannies - it's weird. With agency you can actually do transfers if you're not happy with your nanny so it's a safeguard. With a direct one it's not possible to do so. If you don't like your nanny you can ask her to leave and you'll be left with no one (usually hard to get a replacement immediately). You will not know if the nanny runs away with your deposit as well and if they have family matters to attend to, they may not honour their commitment too. It's a risk.
Normally good CL are booked quite early and thus if you can't get the one you preferred you can resort to book from confinement agency, e.g. PEM. Personally I will prefer to book through agency as it is more hassle free especially if I am not satisfy with the service and can get free replacement from the agency, instead of searching for new CL yourself which is very difficult to get one in the last minute.
Each has its pros and cons - there are good confinement nannies from agencies as well, and you can have up to 2 replacements if you hire a nanny from PEM. For freelance confinement nannies, you really have to do your research because I've read horror stories of lousy confinement nannies who do a lousy job yet demand that they get paid in full.
Both options are fine. I think it depends on whether you have any contacts/recommendations of good confinement ladies. Otherwise, going through an agency would save you some hassle. If you are considering going through agencies, do ensure that they have obtained the relevant license from MOM.
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I prefer to go direct - 'cause no agency cut fee. Plus I am sure the best cl would not use agency.
thanks